Bitcoin Nears All-Time High Amid Tariff Deadline Anticipation

Bitcoin is on the cusp of reaching a new all-time high, potentially as early as this week. Market participants are closely watching the United States' trade tariff deadline on Wednesday, which is seen as a pivotal moment that could unlock significant market sentiment and investment flows. The anticipation surrounding this deadline has created a sense of urgency among investors, who are eager to capitalize on any potential market shifts.

Markus Thielen, the head of research at 10x Research, expressed optimism about Bitcoin's prospects, stating that the cryptocurrency is likely to set a new all-time high this week or next. He noted that the post-July 4th seasonality tends to be bullish, and markets have largely shrugged off tariff-related risks. The deadline for the 90-day pause in US reciprocal tariffs is July 9, and if the US postpones the tariffs again, markets might interpret this as a reluctance to implement them, thereby supporting risk appetite.

Elon Musk's recent comments on Bitcoin have also played a significant role in driving the cryptocurrency's price higher. Musk's endorsement of Bitcoin has been seen as a major validation of the cryptocurrency's potential, and has helped to fuel its recent rally. Musk's influence on the market is undeniable, and his support for Bitcoin has been a key factor in driving its price higher.

John Bollinger, inventor of the Bollinger Bands technical trading indicator, concurred that Bitcoin looks to be setting up for an upside breakout. Bitcoin prices were only 2% away from their May 22 all-time high, briefly topping $109,500 on Monday trading.

Henrik Andersson, chief investment officer at Apollo Capital, noted that the week ahead is likely to be volatile. He mentioned that there is a good chance that the US will sign a framework agreement with the EU this week. Andersson also highlighted that Musk had just mentioned Bitcoin on X, indicating that he is warming up to the asset again. Any downside volatility this week could present a good buying opportunity ahead of next week, which has been designated as ‘Crypto Week’ in the country’s capital.

Jeff Mei, chief operating officer at the BTSE exchange, observed that traders were previously concerned about volatility leading up to the July 9 tariff deadline. However, it appears that markets are rallying after it was revealed that countries will have more time to negotiate before tariffs take effect at the beginning of August. If positive economic indicators are seen on Tuesday, it is likely that markets will continue to rally.

Nick Ruck, director at LVRG Research, suggested that traders may look to altcoins for upside potential as the second half of this year is anticipated for higher volatility and surges in digital asset prices. Eugene Cheung, chief commercial officer at digital assets platform OSL, expressed optimism that more investors will look to Bitcoin and Ethereum to escape macro volatility and potential inflation increases as the Fed signals high potential to cut interest rates this year.